What is the primary characteristic of fraternals in the insurance industry?

The primary characteristic of fraternals in the insurance industry is that they are special types of mutual insurers serving their members. Fraternal organizations often operate on a not-for-profit basis and are established to provide social and financial benefits to their members, who typically share a common bond. This bond can be based on religion, nationality, or other affiliations. The key aspect of fraternals is their focus on the mutual benefit of their members, rather than on outside clients or profit-making motives found in traditional for-profit insurance companies.

In contrast to the notion of for-profit organizations, fraternals emphasize mutual insurance and member services rather than generating profits for shareholders. Additionally, they do not concentrate on providing services to outside clients, as their primary focus is on the insurance needs and welfare of their members. Thus, the unique structure and mission of fraternals as mutual insurers make option C the correct answer.